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Describe how money works in a fiat-based economy
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In a fiat-based economy, the money supply is determined by a central authority, such as a government or a bank. This central authority decides how much money to print, mint, or otherwise create, in order to meet the needs of the economy. This money is not backed by any commodity (like gold or silver), so its value is determined by the authority's promise of acceptance. This type of money is typically created in an effort to stimulate economic activity and allow for transactions to occur.